Ether Drops 3.3% to $2,418 Amid Heavy Selling and Political Unrest
Ether (ETH) declined to $2,418, falling 3.3% over the past 24 hours after losing key support near $2,460 amid significant selling activity.
CoinDesk Research’s technical analysis revealed sustained downward pressure on ETH on July 1, with the price steadily slipping from around $2,500 to $2,418.39.
This drop occurred alongside a broader cryptocurrency market decline, as total market capitalization shrank by 4.1%, primarily due to escalating political tensions in the United States.
The selloff followed a public confrontation between Elon Musk and former President Donald Trump concerning Trump’s comprehensive tax and spending proposal, called the “One Big Beautiful Bill.” Musk criticized the plan as “utterly insane,” claiming it would increase the national debt by $5 trillion, dismantle clean energy incentives, and negatively affect employment. He also pledged to campaign against Republican senators supporting the bill.
In response, Trump fired back with personal attacks, suggesting Musk should be deported despite his U.S. citizenship and accusing him of opposing the bill for reasons related to Tesla’s lost subsidies. This feud has intensified investor worries about fiscal policy, energy regulations, and economic stability—factors that traditionally influence crypto valuations.
Despite the downward price pressure, institutional interest in Ethereum remains strong. On Tuesday, SharpLink Gaming (Nasdaq: SBET) revealed it acquired an additional 9,468 ETH—worth $22.8 million—between June 23 and 27, raising its total ETH holdings to 198,167. This makes SharpLink the largest publicly traded Ethereum holder. The purchase was mostly funded through a $24.4 million capital raise via an at-the-market facility.
SharpLink Chairman Joseph Lubin, who co-founded Ethereum, emphasized that the company is integrating ETH at the core of its financial strategy, viewing the token as a “strategic currency” for the digital economy rather than a speculative asset.
The day before, BitMine (NYSE American: BMNR) announced a $250 million private placement to expand its Ethereum treasury. The funding round, supported by investors such as Pantera, Founders Fund, Galaxy Digital, Kraken, and DCG, is expected to close by July 3. BitMine plans to use ETH as its primary treasury asset, deploying it across staking and DeFi platforms. Chairman Thomas Lee highlighted Ethereum’s dominance in stablecoins and smart contracts, while CEO Jonathan Bates noted partnerships with FalconX, BitGo, and Fidelity Digital to grow their ETH holdings.
These developments underscore a growing institutional embrace of Ethereum as a treasury asset, even as price challenges persist.
Technical Summary:
- ETH dropped 3.3% over 24 hours, declining from $2,500.88 to $2,418.39, with a price range of $96.41.
- The $2,460 support level broke during the 04:00 UTC hour, leading to sustained selling.
- The sharpest drop occurred around 14:00 UTC, with ETH briefly dipping to $2,404.47 amid the highest volume of 379,855.
- Recovery efforts faltered near $2,430, with resistance forming around $2,445.
- Between 20:01 and 21:00 UTC, ETH traded between $2,425 and $2,418 on declining volume, possibly signaling short-term exhaustion.
- The bearish trend remains intact, characterized by lower highs and lows, without clear volume-based reversal signs.
